Management Change/Compensation (Form 8-K)

ITEM 5.02 DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF PRINCIPAL OFFICERS.

The Company has entered into an employment agreement with Erik Mund ("Employment Agreement") whereby Mr. Mund accepted the position of General Manager of the resort effective November 10, 2025.

Mr. Mund has over 25 years of expertise in the hospitality industry and previously served as General Manager of Kon Tiki Inn in Pismo Beach, TownePlace Suites by Marriott in San Luis Obispo and Pismo Lighthouse Suites.

The Employment Agreement dated October 23, 2025, which was contingent on completing background checks that were completed on November 10, 2025, provides that Mr. Mund will be paid a base salary of $160,000 annually, and an incentive bonus at the direction and convenience of the Company's Board of Directors based on year-end fiscal performance each year.

A copy of the accepted Offer Letter (which constitutes the Employment Agreement) relating to this Item 5.02 Form 8-K is furnished as Exhibit 10.2. to this Current Report, and a copy of a letter to shareholders containing additional background and qualifications is attached hereto as Exhibit 10.3.